Invesco Global Equity Income Fund

Transcription

1 Invesco Global Equity Income Fund A-Acc shares April 2018 This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined in the important information) and Ireland, Qualified Investors in Switzerland and Professional Clients in Cyprus, Dubai, Jersey, Guernsey, Isle Of Man, Malta and the UK. This document may also be used by financial intermediaries in the United States as defined in the important information. This document is not for consumer use, please do not redistribute.

2 Contents Invesco Global Equity Income Fund Investment philosophy and process Portfolio performance and positioning 2

3 Invesco Global Equity Income Fund

4 Invesco Global Equity Income Fund Key fund features Significant income potential on a global basis The importance of dividends globally Domicile of stocks is less relevant Companies with high, sustainable and growing dividend yields are available globally and offer investors the prospect of an attractive income stream History shows the importance of dividends to shareholders return. Reinvested dividends are a primary driver of total returns over the long-term Country domiciles matter less in today s global market. Companies operate across multiple regions, and compete with each other for resources, customers and suppliers Diversification Investors can diversify their economic and business risks away from their home market. The fund provides an opportunity to invest globally without geographic constraints in some of the finest companies in the world Experienced team Income investing is a core investment approach of the Invesco Perpetual* business. The Global Equity Income Group is led by Invesco Perpetual CIO Nick Mustoe and includes six specialist regional portfolio managers, who together have an average of 22 years investment experience. These fund managers bring with them the best quality income ideas from each regional investment desk to build a portfolio of the best quality income ideas globally * Invesco Perpetual is a business name of Invesco Asset Management Limited (IAML) and forms part of Invesco UK Ltd, which itself forms part of Invesco. 4

5 Nick Mustoe and Invesco Perpetual Global Equity Income Group Fund manager Nick Mustoe We believe that buying high quality businesses for the long-term at attractive valuations can result in sustained out-performance relative to the index and below market volatility over the long-term. We believe that the best way to mitigate risk is with detailed fundamental analysis, with valuation at its core. Nick Mustoe, Fund manager 5

6 Invesco Global Equity Income Fund Fund facts Fund name Fund objectives Invesco Global Equity Income Fund The Fund aims to generate a rising level of income, together with long-term capital growth, investing primarily in global equities. In pursuing this objective, the Investment Adviser may include investments that they consider appropriate which include transferable securities, money market instruments, warrants, undertakings for collective investment, deposits and other permitted investments 1 Launch date 30 September 2011 Original launch date 7 November Domicile Legal structure Base currency Unit type Reference index Luxembourg Luxembourg SICAV with UCITS status USD Accumulation and distribution MSCI World Index-ND 1 For the full objectives and investment policy please consult the current prospectus. 2 The original fund launch date shown herein is different from the fund launch date shown in the KIID, as it indicates the launch date of a previous fund that was merged into the fund shown and therefore the track record starts with this previous fund. 3 For information on fund and fund s shares registrations, please refer to the appropriate internet site or your local Invesco office. Not all share classes are the same nor do they necessarily suit every investor. There may be differences in fee structures, in minimum investment amounts, etc. Please check the fund prospectus for additional information. 6 Share class Unit type Share class ccy Annual management fee Minimum investment ISIN code A Acc USD 1.40% USD 1,500 LU There may be additional share classes 3 registered for sale in individual jurisdictions.

7 Investment philosophy and process

8 Invesco Perpetual Global Equity Income Group (GIG) Bringing together the best of Henley in a global portfolio Global portfolio strategy Total portfolio ownership/monitoring Global product and business Client communication/business management management Nick Mustoe CIO/Lead Manager Martin Weiss Global Equities Inv. Strategist Arwel Green Global Equities Strategist John Botham Global Equities Product Director 32 years experience 27 years experience 16 years experience 24 years experience Fund managers Original fundamental research & portfolio construction insight US Europe UK Japan Asia Global Simon Clinch US Fund Manager Stephanie Butcher European Fund Manager Mark Barnett Head of UK Equities Tony Roberts Japanese Fund Manager Tim Dickson Asian Fund Manager Andrew Hall Global Fund Manager 20 years experience 24 years experience 25 years experience 22 years experience 24 years experience 17 years experience Source: Invesco Perpetual as at 30 June Years of experience are subject to rounding. 8

9 Invesco Perpetual Global Equity Income Group Investment philosophy and approach Investment philosophy: Short-term market participants increasingly give rise to valuation anomalies Dividends are a key component of equity market returns Stock-specific factors are the primary driver of long-term returns Investment approach: Active Unconstrained Fundamental Valuation Long-term Risk-focused Delivering sustainable outperformance means differing from the market Ability to invest across stock types, sectors, regions and styles We believe original research is the key to identifying true intrinsic worth We believe valuation is the key driver of long-term returns Being prepared to wait is the key to sustainable value realisation We view risk as permanent capital loss, but relative-risk is diversified Source: Invesco Perpetual as at 30 June Where Invesco has expressed views and opinions, these may change. 9

10 How the Global Equity Income Group (GIG) works Continuous management, with a robust investment platform Portfolio Daily management Fortnightly GIG meeting Led by Lead Manager, Nick Mustoe: Market review Regional performance Macro backdrop Valuations CIO/Lead Manager Daily responsibility for the portfolio Harnesses views of Henley team Sets agenda for GIG meetings Investment Strategists Portfolio monitoring/implementation Regional manager dealing/conviction Intra-meeting GIG communication Regional Fund Managers Ongoing fundamental stock research Regional stock dealing updates Recommendations for intra-meeting trading Portfolio review Performance attribution Sector/region/risk exposures Balance of relative risk Existing stocks review Stock winners/losers Manager conviction check Forthcoming company meetings New idea proposals Assessment of investment thesis Global perspective challenge Source of capital Source: Invesco Perpetual as at 30 June For illustrative purposes only. 10

11 Investment process: The MAPS framework Mapping our best regional ideas in a global context MANAGER ASSESSMENT PERSPECTIVE STRUCTURE M A P S Global portfolio Continuous monitoring Conviction Valuation Diversification Risk Source: Invesco Perpetual as at 30 June For illustrative purposes only. 11

12 MAPS framework: MANAGER A repeatable source of high-quality regional ideas Regional fund managers propose their best ideas at the fortnightly Global Equity Income Group investment meeting Proposal criteria: A high conviction, quality income idea, owned by regional equity investment team. M A P S Detailed original fundamental research undertaken. A clear and understandable investment thesis, including return expectation, and key risks. Output Strong, repeatable regional ideas Source: Invesco Perpetual as at 30 June For illustrative purposes only. 12

13 MAPS framework: ASSESSMENT Understanding the idea, and testing the investment thesis The Global Equity Income Group rigorously tests and assesses the idea Financials analysis Macro/industry Are revenues/margins sustainable? What drives this business? How strong is the balance sheet? Position within the industry? Do we agree with assumptions? Impact of operating/economic environment? M A P S Management How well do we know them? Alignment of interests? Strategy/capital allocation discipline? Investment thesis What are the drivers of expected upside? Confidence in return drivers? Valuation Attractively valued, or value trap? What is the market missing? What is the true intrinsic value? Risks What are the key risks to the thesis? Potential downside? Output Rigorously tested regional investment ideas Source: Invesco Perpetual as at 30 June For illustrative purposes only. 13

14 MAPS framework: PERSPECTIVE Deploying our attractive global perspective advantage The Global Equity Income Group determines whether ideas are truly attractive, on a global basis Opportunity cost What are the global alternatives? Is there a more attractive idea elsewhere? The Global Equity Income Group is compensated at the total portfolio level. M A P S Valuation Valuation relative to its regional peers? Valuation relative to its global peers? Fund manager interests are aligned with choosing the best global ideas. Source of capital More attractive than existing ideas? Output Our best truly global investment ideas Source: Invesco Perpetual as at 30 June For illustrative purposes only 14

15 MAPS framework: STRUCTURE Building diversified, risk-adjusted return potential Bottom-up construction, driven by conviction and risk/return potential Source: Invesco Perpetual as at 30 June For illustrative purposes only. *TE = Tracking Error. For the full objectives and investment policy please consult the current prospectus. Applies to Invesco Global Equity Income Fund. 15 Typical portfolio parameters Stocks Minimum size: 0.5% at entry Maximum size: 2.5% at entry (5% overall) Maximum 15% of total stock level TE * Market capitalisation Maximum 20% of portfolio <US$10bn Sectors Minimum of 7 GICS sectors Maximum of 2.5x GICS sector weight Geographical exposures Developed markets focused US: 0% - 75% Europe ex. UK: 0% - 50% UK: 0% - 30% Japan: 0% - 30% Asia ex Japan: 0% - 30% Cash levels Fully invested: Typically less than 3% Position sizing criteria: Stock specific: Upside Risk Strength of conviction Level of liquidity Portfolio considerations: Total portfolio yield Diversification potential Relative-risk contribution Output A diversified portfolio of our best global valuation opportunities M A P S

16 Portfolio monitoring Continuous investment team oversight Daily responsibility for the portfolio Harnesses views of Henley team Sets agenda for GIG meetings CIO/Lead Manager Globally diversified portfolio holdings Active share >90% Low turnover Liquid Investment Strategists Portfolio monitoring/implementation Regional manager dealing/conviction Intra-meeting GIG communication Regional Fund Managers Ongoing fundamental stock research Regional stock dealing updates Recommendations for intrameeting trading Source: Invesco Perpetual as at 30 June For illustrative purposes only. Applies to Invesco Global Equity Income Fund. 16

17 Risk management A robust framework, with independent oversight A robust framework, from investment team to independent risk management Global Equity Income Group Stock level risk management Portfolio level risk management Investment Oversight Governance of the portfolio Oversight of the investment process Independent Risk Function/GPMR Independent risk analysis Independent risk challenge Source: Invesco Perpetual as at 30 June For illustrative purposes only. GPMR: Global Performance and Risk Management. 17

18 Risk management The Global Equity Income Group Risk is primarily considered to be the permanent loss of capital. Risk is not considered to be share price volatility. The team aims to diversify relative-risk contributions at the stock level. Stock level Investment thesis challenge Valuation/conviction challenge Management assessment Levels of stock liquidity Contribution to relative risk (APT) Portfolio level Performance attribution (CaPER) Portfolio liquidity (Style Research) Style analysis (Style Research) Risk analysis (APT) Sector/geographic/factor exposures Source: Invesco Perpetual as at 30 June For illustrative purposes only. 18

19 Risk management Investment oversight Key considerations Performance Attribution/contribution Assets/flows/liquidity Risk Key questions Are portfolios being managed in line with the stated investment philosophy/approach? Are fund managers acting in a way that adds value for clients? Are the risks taken on behalf of clients understood and appropriate? Is the investment process robust? Style attributes Active positioning Transaction analysis Stock analysis Source: Invesco Perpetual as at 30 June For illustrative purposes only. 19

20 Risk management The Independent Risk Function/GPMR Independent risk functions monitor portfolio and operational risk. Independent Risk Function (IRF) Identify, quantify and assess portfolio risk These include market, liquidity, leverage, operational and counterparty Operates an early warning traffic light system (RPLS) Undertakes quarterly/semi-annual meetings with fund managers Risk Profile & Limit System (RPLS) Relative VaR* Green Yellow Amber Red < 60% 60% 70% 100% Internal risk limits take into account portfolio objectives, strategy and risk profile Global Performance Measurement and Risk team (GPMR) Provides comprehensive and reliable sources of information and analysis Provides regular reviews of investment team performance/risk attributes to senior leadership Risk reporting focuses on Value at Risk (VaR), back-testing/stress-testing, and liquidity risk analysis Source: Invesco Perpetual as at 30 June *Relative VaR is calculated as: VaR of the UCITS/2* VaR of the reference portfolio. Table shown for illustrative purposes only. 20

21 Portfolio performance and positioning

22 Invesco Global Equity Income Fund Indexed performance Indexed performance /13 09/13 03/14 09/14 03/15 09/15 03/16 09/16 03/17 09/17 03/18 Fund MSCI World Index-ND The performance data shown relates to a past period. Past performance is not a guide to future returns 1 (Source: 2017 Morningstar as at 31 March 2018) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulative, in fund currency. The figures do not reflect the entry charge payable by individual investors. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. 22

23 Invesco Global Equity Income Fund Cumulative and calendar year performance Cumulative performance 1 in % YTD 1 month 1 year 3 years 5 years Fund Index Quartile ranking Absolute ranking 32/101 89/102 16/92 33/73 16/52 Mstar GIF OS Sector: Global Equity-Income Calendar year performance 1 in % Fund Index LU Rolling 12 month performance 1 in % Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Fund Index The performance data shown relates to a past period. Past performance is not a guide to future returns 1 (Source: 2017 Morningstar as at 31 March 2018) Fund returns are inclusive of gross income re-invested and net of the ongoing charge and portfolio transaction costs, cumulative, in fund currency. The figures do not reflect the entry charge payable by individual investors. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. 2 MSCI World MSCI World Index - net return USD. Sector average performance is calculated on an equivalent basis. 23

24 Invesco Global Equity Income Fund Issuers and active weights Issuers and active weights 1 (total holdings: 53) Top 10 Holdings % JPMorgan Chase 3.1 Royal Dutch Shell 'A' (EUR) 2.9 Orange 2.9 Statoil 2.6 Chevron 2.6 BP 2.6 Total 2.6 Taiwan Semiconductor ADR 2.5 CaixaBank 2.5 Intesa Sanpaolo 2.5 Top 10 positive + Royal Dutch Shell 'A' (EUR) 2.9 Orange 2.8 Statoil 2.6 Taiwan Semiconductor ADR 2.5 CaixaBank 2.4 Intesa Sanpaolo 2.4 BP 2.3 Ahold Delhaize 2.3 Total 2.2 Deutsche Post 2.2 Top 10 negative Apple 2.2 Amazon 1.5 Facebook 'A' 1.0 Johnson & Johnson 0.9 Alphabet 'C' 0.8 Exxon Mobil 0.8 Alphabet 'A' 0.8 Bank of America 0.7 Berkshire Hathaway 'B' 0.6 Nestle Source: Invesco as at 31 March Portfolio weightings can change any time and without warning. This is no financial advice and no recommendation to buy/hold/sell these securities. This is no financial advice and no recommendation to buy / hold / sell these securities. There is no guarantee that Invesco will keep these securities within its funds in the future. 24

25 Invesco Global Equity Income Fund Geographical weightings Geographical weightings 1 Geographical weightings of the fund in % 1 in % Fund Index 2 United States United Kingdom France Germany Switzerland Netherlands Japan Norway Others Cash United States United Kingdom France Germany Switzerland Netherlands Japan Norway Others Cash 1 Source: Invesco as at 31 March Portfolio weightings can change any time and without warning. 2 MSCI World Index-ND. 25

26 Invesco Global Equity Income Fund Sector weightings Sector weightings 1 Sector weightings of the fund in % 1 in % Fund Index 2 Financials Energy Industrials Health Care Consumer Discretionary Information Technology Telecommunication Services Consumer Staples Others Cash Financials Energy Industrials Health Care Consumer Discretionary Information Technology Telecommunication Services Consumer Staples Others Cash 1 Source: Invesco as at 31 March Portfolio weightings can change any time and without warning. 2 MSCI World Index-ND. 26

27 Invesco Global Equity Income Fund Financial characteristics 1 USD bn Average weighted market capitalisation Median market capitalisation year characteristics 2 Alpha -2.4 Beta 1.0 Correlation 0.9 Information Ratio -0.5 Sharpe Ratio 0.4 Tracking Error 4.1 Volatility in % Source: Invesco as at 31 March Source: Morningstar as at 31 March

28 Risk Warnings The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. 28

29 Important Information This marketing document is exclusively for use by Professional Clients and Financial Advisers in Continental Europe (as defined below) and Ireland, Qualified Investors in Switzerland and Professional Clients in Cyprus, Dubai, Jersey, Guernsey, Isle Of Man, Malta and the UK. This document may also be used by financial intermediaries in the United States as defined below. By accepting this document, you consent to communicate with us in English, unless you inform us otherwise. This document is not for consumer use, please do not redistribute. Data as at , unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities. Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice. For more information on our funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents. This information is available using the contact details of the issuer and is without charge. Further information on our products is available in English using the contact details shown. This marketing document is not an invitation to subscribe for shares in the fund and is by way of information only, it should not be considered financial advice. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring the fund should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations where applicable. The fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction.please be advised that the information provided in this document is referring to Class A ( accumulation - USD) exclusively. This fund is domiciled in Luxembourg. For the distribution of this document, Continental Europe is defined as Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. Germany, Austria, Switzerland and Liechtenstein: This document is issued in Germany by Invesco Asset Management Deutschland GmbH. This document is issued in Austria by Invesco Asset Management Österreich Zweigniederlassung der Invesco Asset Management Deutschland GmbH, and in Switzerland as well as Liechtenstein by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the most up to date legal offering documents. The legal offering documents (fund & share class specific Key Investor Information Document, prospectus, annual & semi-annual reports, articles and trustee deed) are available free of charge at our website and in hardcopy and local language from the issuers: Invesco Asset Management Deutschland GmbH, An der Welle 5, D Frankfurt am Main, Invesco Asset Management Österreich Zweigniederlassung der Invesco Asset Management Deutschland GmbH, Rotenturmstrasse 16-18, A-1010 Wien, and Invesco Asset Management (Schweiz) AG, Talacker 34, CH-8001 Zurich, who acts as a representative for the funds distributed in Switzerland. In Liechtenstein the KIID and Prospectus are available in German and English on respectively. Paying agent in Switzerland: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zürich. Paying agent in Liechtenstein: LGT Bank AG, Herrengasse 12, FL-9490 Vaduz. Denmark: The fund is not registered for public distribution in this jurisdiction. This document is provided only to Professional Clients and must not be redistributed to retail clients. Belgium, Denmark, Finland, France, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden: This document is issued by Invesco Asset ManagementS.A., rue de Londres, Paris, France. Ireland: Issued by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. Cyprus: Issued by Invesco Asset Management S.A. 18, rue de Londres, F Paris. Authorised and regulated by the Autorité des marchés financiers in France. Any scheme provided by the Cyprus regulatory system, for the protection of retail clients, does not apply to offshore investments. Compensation under any such scheme will not be available.the Invesco Global Equity Income Fund is subject to the provisions of the European Directive 2009/65/EC. Dubai: Issued by Invesco Asset Management Limited, Po Box , DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab Emirates. Regulated by the Dubai Financial Services Authority. Jersey and Guernsey: Issued by Invesco International Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier, Jersey, JE2 4WD. Regulated by the Jersey Financial Services Commission. In Guernsey, the fund can only be promoted to Professional Clients. Isle of Man: Issued by Invesco Global Asset Management DAC, Central Quay, Riverside IV, Sir John Rogerson s Quay, Dublin 2, Ireland. Regulated in Ireland by the Central Bank of Ireland. The Invesco Global Equity Income Fund is an unregulated scheme that cannot be promoted to retail clients in the Isle of Man. The participants in the scheme will not be protected by any statutory compensation scheme. Malta: Issued by Invesco Asset Management S.A. 18, rue de Londres, F Paris. Authorised and regulated by the Autorité des marchés financiers in France. Investments should be based on the full details of the Prospectuses. The Prospectuses, the fund and share class-specific Key Investor Information Documents and further information are available from Invesco Asset Management S.A. UK: Issued by Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority. For the purposes of UK law, the fund is a recognised scheme under section 264 of the Financial Services & Markets Act The protections provided by the UK regulatory system, for the protection of Retail Clients, do not apply to offshore investments. Additional information for financial intermediaries in the United States: This document is intended for distribution to US financial intermediaries for informational purposes and in relation to their activities with offshore clients only. The Funds are not registered under any US securities law, and may not be offered or sold directly or indirectly in the US, its territories or possessions, nor to any US persons, citizens or residents. The Fund must not be marketed on US soil. This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions. Issued in the US by Invesco Distributors, Inc., 11 Greenway Plaza, Suite 1000, Houston, Texas 77046, USA. Invesco Distributors, Inc. is the appointed US sub-distributor of the Invesco Funds SICAV and Invesco Fund Series 1-6. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. 29